Regions Bank 2012 Annual Report Download - page 196

Medicare. Certain retirees, participating in plans of acquired entities, are offered a Medicare supplemental
benefit. The plan is contributory and contains other cost-sharing features such as deductibles and co-payments.
Retiree health care benefits, as well as similar benefits for active employees, are provided through a self-insured
program in which Company and retiree costs are based on the amount of benefits paid. The Company’s policy is
to fund the Company’s share of the cost of health care benefits in amounts determined at the discretion of
management. Postretirement life insurance is also provided to a grandfathered group of employees and retirees.
Actuarially determined pension expense is charged to current operations using the projected unit credit method.
All defined-benefit plans are referred to as “the plans” throughout the remainder of this footnote.
The following table sets forth the plans’ change in benefit obligation, plan assets and the funded status of
the pension and other postretirement benefits plans, using a December 31 measurement date, and amounts
recognized in the consolidated balance sheets at December 31:
Pension
Other
Postretirement Benefits
2012 2011 2012 2011
(In millions)
Change in benefit obligation
Projected benefit obligation, beginning of period ............... $1,986 $1,725 $ 30 $ 31
Service cost ............................................ 40 36 — —
Interest cost ............................................ 90 91 2 1
Actuarial losses (gains) ................................... 135 216 — —
Benefit payments ........................................ (81) (80) (3) (2)
Administrative expenses .................................. (3) (2) — —
Projected benefit obligation, end of period .................... $2,167 $1,986 $ 29 $ 30
Change in plan assets
Fair value of plan assets, beginning of period ................. $1,494 $1,509 $ 4 $ 4
Actual return on plan assets ............................... 191 58 — —
Company contributions ................................... 148 9 2 2
Benefit payments ........................................ (81) (80) (3) (2)
Administrative expenses .................................. (3) (2) — —
Fair value of plan assets, end of period ....................... $1,749 $1,494 $ 3 $ 4
Funded status and accrued benefit cost at measurement date ...... $ (418) $ (492) $ (26) $ (26)
Amount recognized in the Consolidated Balance Sheets:
Other liabilities ......................................... $ (418) $ (492) $ (26) $ (26)
Pre-tax amounts recognized in Accumulated Other Comprehensive
(Income) Loss:
Net actuarial loss (gain) .................................. $ 755 $ 767 $ (5) $ (5)
Prior service cost (credit) ................................. 3 5 (4) (7)
$ 758 $ 772 $ (9) $ (12)
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